A BRIEF ON IT AND ITES INDUSTRIES & ITS GROWTH.

WHAT IS IT ? As defined by

INFORMATION TECHNOLOGY ASSOCIATION OF

AMERICA (ITAA) “IT” is the “study, design, development, implementation, support or management of computer based information system particularly software's applications & computer hardware.

IT SECTOR IN INDIA

IT sector in the country has increased at an incredible rate of 35% per year for the last 10 years reinforces the view that India is world class in IT

In IT services , India is emerging as one of the most preferred destinations for BPO’S.

It is playing an important role in economic development in a broader sense, beyond just economic growth.

The IT sector is one of the largest employers of women, and therefore, can play a crucial role in women empowerment and the reduction of gender inequalities.

The growth in the BPO sector under the supervision of the IT-ITES sector has been phenomenal. According to NASSCOM, “The IT-BPO sector in India aggregated revenue of US$ 100 billion in 2012, where export and domestic revenue stood at US$ 69.1 billion and US $31.7 billion respectively”.

The estimated employment generation in the 2012 was an expected 230,000 thus providing direct employment to 2.8 million and indirect employment 88.9 million people all over the country. According to a report prepared by Gartner, the top five outsourcing companies of India are TCS, Cognizant, Infosys, Wipro and HCL Technologies.

LIBERALIZATION OF THE ECONOMY & THE SEEDS OF IT BOOM IN INDIA

Abolition of licenses Rationalization of taxes Export thrust Reduction of import tariffs Abolition of wealth tax Foreign exchange reforms Free pricing of IPOs Foreign portfolio investments Employee stock option plans

IT SECTOR INCLUDES….

IT SECTOR

BPO’S

KPO’S

WHAT IS BPO ?

BPO stands for Business processing outsourcing. It includes contracting of a specific business task, such as payroll to a third party service provider.

BPO is implemented as a cost saving measure for tasks that a company requires, but does not depend upon to maintain their position in the market place..

TOP 5 BPO’S IN INDIA

TCS (TATA CONSULTANCY SERVICES) - It is the largest IT employer in India, with more than

126,000 employees. INFOSYS:- it has more than 1,04,850 employees. WIPRO:- it has carved a unique position in the

outsourcing company opreates from 10 different locations. It has more than 98,000 employees.

COGNIZANT:-it is a forbes global 200 companies,and is a member of fortune 1000,and is ranked among the information technology companies.

HCL TECH-it has more than 54,000 employees and HCL’S BPO’S focuses on sectors like telecom ,retail ,banking and financial services.

WHAT IS KPO’S ? KPO stands for knowledge process

outsourcing. It is claimed that it is one step extension of BPO.

KPO industry is handling more amount of high skilled work other than the BPO industry.

TOP 5 KPO’S IN INDIA.1.Genpact.2.Evalueserve. 3.Ugam solutions.4.WNS global service.5.24/7 customer.

INDIAN SCENARIO

Creating opportunities for the ‘out-of-the-mainstream’ candidates.

India is a popular choice for customers seeking outsourcing services because it is able to offer a 24*7 services by reduction in costs while maintaining quality.

Some flagship companies that are providing good career in IT

sector are – Infosys technologies, TCS, WiproTechnologies, Tech Mahindra,

Cognizant, HCL technologies, Satyam Computers etc.

TOP THREE PLAYERS IN IT SECTOR

CURRENT EMPLOYMENT IN IT AND ITES INDUSTRIES

The Indian IT and ITES industry currently employs about 2.2 million persons in comparison to 0.8 million in 2004.

In the context of growth forecasted for the industry, availability of skilled human resource supported by appropriate skill building initiatives will be key to this growth.

In the near term, it is expected that the IT and ITES industry can achieve an export target of USD 60- 62 billion by FY 2014, employing 2.5-3 million professionals directly in the export segment and contributing substantially to the socio-economic development of the country.

PROJECTED INDUSTRY SIZE AND HUMAN RESOURCE REQUIREMENT

As outlined in the earlier sections, sustained technology spending globally, and increasing GDP growth and spending in India are expected to be primary drivers of growth.

Post 2020, growth drivers in addition to traditional IT and BPO services large companies (in the Fortune 500) in US and EU will arise from Small and Medium Businesses (SMBs), public sector, healthcare, media, and utilities.

A significant portion of the growth would be driven by markets in BRIC countries, APAC, Japan, and Rest of the world. A shift would occur in terms of customer expectations, led by innovation, end-to- end offerings, risk management, and compliance. It is expected that the ‘outsourceable’ market would expand from the current US $ 500 billion to about US $ 1.5 to 1.6 trillion by 2020.

Sustained GDP growth, increasing public sector spends, and adoption of IT by industry would drive the domestic component of the market.

Given these factors, it is expected that the Indian IT and ITES Industry would record about US $ 220 billion in exports and US $ 60 billion domestically by 2022, totalling to about US $ 260 billion growing at a CAGR of 12.8%.

PROJECTED HUMAN RESOURCE REQUIREMENTS

SUPPLY OF MANPOWER IN IT SECTOR

India’s public investment in technical education beginning in the 1960s provided the foundation for growth of the IT industry. Lack of adequate opportunities for Indian engineers in the domestic economy has ensured an abundant and cost effective workers for Indian export software industry.

In the 1960s the govt. created a series of elite institutes for higher education in engineering and management, in collaboration with leading universities in USA, that was IIT and IIM.

L

Professional in India attracts large number of applicants. Most of the IIT, REC and IIM admissions programs are able to choose one out of 100 or more applicants. This selectivity and reasonably good training produces the higher calib engineers that formed the backbone of the software industry in its early years.

After that subsequent expansion of technical and management in India helped fuel the numbers needed for the high growth.

Now India has a large higher education system with about 253 universities and nearly 13000 colleges producing 2.5 million graduates every year.

Nearly 3,00,000 engineering degree and other graduates enter the workforce every year. Since engineers from any specialty are willing to work in the software industry, so far supply has kept pace with the demand.

Many initiative by the HRD ministry helped to multiply technical institutions and technically qualified graduates.

Recently privatization of technical produced in an ever increasing technical labor supply to meet demand. By the end of last decade, there was an estimated 660 engineering colleges in the country.

Much of this manpower supply is due to privatization of technical education. In 1999, output from private institutions outstripped the state output. Even though the number of engineers has increased, quality has not deteriorated significantly. In 1969, the IITs produced around 1350 engineers.

The private cost to start an engineering college that produces 500 students per year is currently about 500 million Indian rupees. The private institutions receive no funding from Indian government.

One reason for the concentration of software industries in south is the proximity of the locations to a very large number of engineering college.

The HRD ministry played a facilitating role in ensuring adequate supply and quality of the technical labour force.

Ministry policies encouraged creation of private engineering colleges and industry IT training institution with the proliferation of new private colleges and IT training institutions.

The HRD ministry developed mechanism to assure quality control , including the establishment of an All India Council For Technical Education to regulate technical education.

Additionally, the introduction of a MCA degree in many universities in late 1980s was aimed at producing graduates with combination of technical and management skills required for expanding It industry.

Spending By IT Companies On Training & development.

WHAT IS TRAINING & DEVELOPMENT:-

A learning process and task oriented activity.

The process of teaching new employees the

basic skills they need to perform their jobs.

Effective trainings convey relevant and

useful information that inform participants

and develop skills and behaviors that can be

transferred back to the workplace.

Edwin B. Flippo :

"Training is the act of increasing the knowledge and skill of an employee for doing a particular job.'

SPENDINGS ON TRAINING & DEVELOPMENT:-

Indian organizations on average spent US $331 per employee on training and development in 2011, according to a study on learning and development trends in India, by the American Society for Training & Development (ASTD) and Harvard Business Publishing (HBP). 

The figure includes learning and development staff salaries, travel costs for L&D staff, administrative costs, non salary development costs, delivery costs (such as classroom facilities and online learning technology infrastructure), outsourced activities and tuition  

In terms of IT industries,Infosys annually spends over Rs 800 crore (Rs 8 billion) on training alone. Wipro spends about 2 per cent of its net sales in providing training to employees.

Infosys is rated amongst world best in employees training and development.

CURRENT CHHATTISGARH PERFORMANCE IN IT SECTOR.

CHHATTISGARH(C.G)

Chhattisgarh state was formed on 1 November 2000.Raipur was made its capital city. C.G is a state in Central India . It is the 10th largest state in India . With a population of 25.5 million, Chhattisgarh is the 16th most-populated state of the nation. It is a source of electricity and steel for India . Chhattisgarh accounts for 15% of the total steel produced in the country. Chhattisgarh is one of the fastest developing states in India.

C.G is generously best toward with natural resources like- forests , minerals & surface water.

South eastern coal field limited, NTPC have presence in state.

But in IT sector chhattisgarh do not have any big company.

CG PERFORMANE FOR IT COMPANIES:-

In recent years, Chhattisgarh is also getting exposure in information technology (IT) projects and consultancy.

Its government is also promoting IT and has set up a body to take care of the IT solutions. The body, known as CHIPS , is providing large IT projects such as Choice, Swan, etc.

WHAT IS CHIPS – Chhattisgarh infotech and biotech Promotion Society (CHiPS) has been set up to

give impetus to IT growth in the State and implement initiatives for overall socio economic development.

CHiPS ensures top-of-the-board institutionalised coordination and implementation of State’s plans for enabling benefits of IT to every one.

CG PERFORMANE FOR IT COMPANIES:-

Companies of IT in c.g :- Nimble Technologies:

Software Development Company, Website Designing

IT company korba. Prima Softtech.com

Prima softtech as a provide IT services, consulting and business solutions partner,

IT companies Bilaspur. Mini Infotech

IT companies raipur.

INTRODUCTION OF IT POLICY

Chhattisgarh announced many initiatives in the IT sector, which deliver significant benefits to all the citizens & all the businesses.

Our state vision of pioneering e-Governance initiatives in India that serve as a benchmark for others to follow.

IT Policy is culmination of our clear vision and goal of leveraging the potential of Information Technology for rapid social and economic development aimed at significantly improving the quality of life for all citizens of the State.

The Government of Chhattisgarh visions ‘Vikas mool mantra, Aadhar loktantra’ (‘Driving Development through Democratic Governance’) and believes Information and Communication Technology (ICT) is a particularly important medium for the state in reaching out and improving livelihoods specially for its overwhelming SC / ST population across 44% forest area, which had largely remained untouched by modern development.

An overwhelming proportion of this population are dependent upon agriculture and forest for their basic livelihood. Despite significant bottlenecks of limited access to market related information, monsoon forecasts, government schemes etc. ICTs has the potential to significantly improve this contribution.

VISION

The State of Chhattisgarh recognizes the importance of Information and Communication Technology as a key enabler in its economic development and improving the quality of life.

The State has prepared its IT policy with a vision of establishing an information society consisting of informed, active and therefore responsible citizens – the basic tenet of a true democracy. It seeks to provide all citizens widespread and easy access to government services, in the local language effectively addressing the existing digital divide and promoting entrepreneurs.

The State's IT Policy has been designed to achieve the Governments vision of creating an ‘enabled Society effectively contributing to the Social and Economic Development of the State’.

The state seeks to create a knowledge society where access to information and knowledge would be symmetric amongst all seekers and users and every citizen must feel comfortable in accessing information through IT.

OBJECTIVE OF IT POLICY

To create job creators rather than job seekers.

To establish Chhattisgarh as the leading destination of choice for IT investments.

To provide an enabling environment for a robust growth of local IT industry in the State.

Leveraging IT for improving governance in the state.

Taking internet to masses for facilitating information access.

TARGETS

Ensure anytime and anywhere connectivity setting the stage for fostering a competitive IT Industry. This approach besides resulting in additional employment and raise incomes would lead to productivity and better services in other sectors.

Provide all citizens widespread and easy access to government services at an affordable cost and in local language by setting up Integrated Service Delivery Centres across the entire state.

100% IT literacy in all schools and colleges in a phased manner.

Promote entrepreneurs, increase investment and employment.

DEVELOPMENT STRATEGIES Technology enabled governance To start the use of IT , develop the market

for IT product, the Government would maximise the use of technology in all its processes. In doing so Government Process Reengineering would be encouraged wherever necessary.

Infrastructure and Human Resource Development

The State should build best-in class education, training facilities and R&D infrastructure to equip its citizens. State should work towards establishment of software parks and extension. An Information Technology University will be planned for development of human resources in the state.

Extended Government support for Information Technology Development

Chhattisgarh has very high priority to Information Technology. IT has been identified as a ‘Special Thrust Sector’ industry in the Industrial policy.

The some incentives are – Interest subsidy on term loan and working

capital paid by SSI. Subsidy on Capital Investment by SSI. Subsidy on Commercial Tax paid within the

State.

Exemption from payment of electricity duty for new units.

Subsidy on Allotment of land premium. Exemption from payment of entry tax. New small scale industries will be given full

exemption from payment of land revenue on diverted land up to a maximum of 5 acres.

Reimbursement of up to 50% of the fee paid up to Rs.75,000/- for an ISO or any international certification.

NRI and FDI investors will be eligible to get additional 5% directed incentives more than general category investors.

ACTION PLAN

Supportive Institutional Structure – CHiPS The Chhattisgarh infotech and biotech

Promotion Society (CHiPS) has been set up to give impetus to IT growth in the State and implement initiatives for overall socio-economic development.

CHiPS ensures top-of-the-board institutionalised coordination and implementation of State’s plans for enabling benefits of IT to every one.

The Chief Minister of Chhattisgarh heads the High Powered Governing Council of CHiPS. The Council includes eminent persons from Knowledge and Technology sectors, representatives from Government of India and National Agencies, and key State Government Departments.

Departmental Computerization for enhanced Service Delivery Capability

To facilitate computerisation in all departments, each department will have an IT working group, a Chief Information Officer (CIO) and a representative from CHiPS besides co-opting IT professionals on voluntary or contractual basis from other Departments or Agencies.

A major emphasis of the computerization in departments would be to ensure the investments in computerizations are directed at improving the service delivery capabilities of the Government departments.

Some of the major e-governance initiatives are-

CHOiCE : Chhattisgarh Online information System for Citizen Empowerment. CHOiCE provides one stop solution, for anywhere, any time, based secure services for all the requirements of citizen. CHOiCE centres will provide a wide range of services including connectivity, information, IT education, e-governance and e-commerce.

Local Language solution: State is committed for improving standards in local language solutions. For this purpose, State is willing to fund research and development also.

SWAN (State Wide Area Network): For interdepartmental communication and data sharing within the state communication infrastructure has been planned under this project. The State presently have connectivity up to block level with data and video communication via VSAT (Very Small Aperture Terminal) under programme called e-Panchayat.

e-Procurement: State encourages to implement e-Procurement in all the Departments of the State to capture whole purchase cycle. The implementation of e-Procurement is now in the pilot stage in the five Departments of the State viz; Chhattisgarh State Infrastructure Development Corporation (CSIDC), Health Department, Public Works Department (PWD), Water Resource Department (WRD) and Chhattisgarh State Electricity Board(CSEB).

Telemedicine: A comprehensive telemedicine network would be launched which would also ride over State Wide Area Network. The objective of the State telemedicine net would be to provide instant medical advice and facilities to the citizens of the State, This would cover backward areas.

Thank-you